(Bloomberg) -- Gold snapped two days of gains, with traders looking ahead to US inflation data that will offer clues on the Federal Reserve’s rate-cutting path.
Bullion edged below $2,510 an ounce, after gaining more than 1% over the prior two sessions following remarks from Fed Chair Jerome Powell Friday that cemented expectations of cuts. His stance was echoed on Monday by Fed Bank of San Francisco President Mary Daly, who said she believes it’s appropriate for the US central bank to begin reducing rates.
Key to the outlook will be US inflation figures due on Friday, which are expected to show the three-month annualized rate of core inflation down to 2.1%, just above the central bank’s 2% goal. Lower interest rates are often seen as positive for non-interest bearing gold.
Gold has surged by more than a fifth so far this year, boosted by expectations of rate cuts and robust purchasing by central banks. The precious metal has also been supported by haven demand amid ongoing conflicts in the Middle East and Ukraine.
Spot gold fell 0.4% to $2,509.01 an ounce by 11:45 a.m. in London. The Bloomberg Dollar Spot Index was steady, while the US 10-year Treasury yield rose. Palladium gained, while platinum slipped and silver were little changed.